Tag Telecom Stocks

Vodafone Idea ltd
Vodafone Idea’s Revival Plan: Government Equity Boost vs Shareholder Value Erosion

Business and Industry Overview: 

Vodafone Group Plc is a multinational telecom firm based in the United Kingdom. Its global headquarters and registered office are located in Newbury, Berkshire, England. It predominantly operates services in Asia, Africa, Europe, and Oceania. As of January 2025, Vodafone owns and operates networks in 15 countries, with partner networks in 46 further countries. Its Vodafone Global Enterprise division provides telecommunications and IT services to corporate clients in 150 countries. Vodafone has a primary listing on the London Stock Exchange and is a constituent of the FTSE 100 Index. The company has a secondary listing on the NASDAQ as American depositary receipts (ADRs). 

India has one of the largest telecom markets in the world, with 1.2 billion telephone subscribers as of May 2024. The rural telecom sector is also growing, with 59.59% of rural areas now having phone connections. Mobile data usage has increased by more than 10 times in recent years. In FY18, total wireless data usage was 4,206 petabytes, which increased to 47,629 petabytes in Q2 FY24. India is also one of the biggest consumers of data in the world. As per TRAI, the average data usage per user was only 61 MB per month in 2014, but in December 2023, it reached 19.47 GB per month. 

There are many opportunities in the telecom sector. By 2026, India will have 350 million 5G users, which will be 27% of all mobile users. The country is also increasing its mobile phone exports. In FY24, exports of mobile phones grew by 42%, reaching $15.6 billion. The demand for skilled workers is also increasing. By 2025, India will need around 22 million workers in fields like 5G technology, artificial intelligence (AI), the Internet of Things (IoT), robotics, and cloud computing. India is also leading in internet usage worldwide. The country ranks 2nd in international mobile broadband internet traffic and international internet bandwidth. 

Vodafone India is the Indian subsidiary of the UK-based Vodafone Group. It provides telecommunications services in India and has its operational head office in Mumbai. The Vodafone Idea network has approximately 375 million subscribers and is the third-largest mobile telecommunications network in India. 

Currently, India is the world’s second-largest telecommunications market, with a total telephone subscriber base standing at 1,203.69 million and having registered strong growth in the last decade. The Indian mobile economy is growing rapidly and will contribute to India’s Gross Domestic Product (GDP), according to a report prepared by the GSM Association (GSMA) in collaboration with Boston Consulting Group (BCG). Vodafone Idea is one of the dominant players in the market, with an 18.19% market share.  

Latest Stock News: 

As of April 8, 2025, Vodafone Idea’s stock fell about 11.4% from ₹8.17 to ₹7.24 on NSE after an earlier rise driven by the government converting ₹36,950 crore of the company’s dues into equity, increasing its stake to 48.99%. SEBI allowed this without an open offer, treating the government as a public shareholder, to avoid financial strain and support the struggling telecom firm. Despite this relief, Vi continues to face challenges—JM Financial expects it lost 4.2 million low-paying users in Q4FY25, though its mobile broadband users may grow by 2 million. ARPU is projected to stay flat at ₹163, and revenue may decline 2.1% to ₹10,900 crore, with EBITDA also falling slightly. In contrast, Jio and Airtel are expected to gain 4 million and 3 million users, respectively, while Vi’s base may shrink to 197 million. Meanwhile, Vi confirmed to stock exchanges that no shares were dematerialised or rematerialised in the March 2025 quarter, with over 99.9999% of shares already in demat form. 

Potentials: 

Vodafone Idea is working hard to fix its problems and get more customers. It plans to improve its 4G network so people can enjoy faster internet and fewer call drops. The company also wants to launch 5G services, but it needs a lot of money to do that. Since Vodafone Idea has a huge debt, it will ask investors for money and take loans to pay what it owes. 

To stop customers from leaving, Vodafone Idea will offer better recharge plans and discounts and improve network quality. It will also expand its services for businesses, offering things like cloud storage, security solutions, and IoT (smart technology) services. The Indian government now owns a big part of Vodafone Idea and might help the company with its financial troubles. 

Vodafone Idea will focus on villages and small towns by offering cheaper mobile plans to attract more users. The company must raise enough money, keep its customers happy, and launch 5G soon if it wants to survive and compete with Reliance Jio and Airtel. 

Analyst Insights: 

  • Market capitalisation: ₹ 51,332 Cr. 
  • Current Price:  ₹ 7.19 
  • 52-Week High/Low: ₹ 19.2 / 6.60 
  • Dividend Yield: 0.00% 
  • Return on Capital Employed (ROCE): -3.61% 

Vodafone Idea has been consistently posting losses, with a net loss of ₹6,609 Cr in Q3 FY24 and negative EPS of ₹-0.95. The company holds a massive debt burden of over ₹2.5 lakh crore, and its book value stands at ₹-13.7, reflecting severe erosion of shareholder equity. While operating margins have improved to 42% and there has been a slight promoter holding increase of 1.48% in the recent quarter, the overall financial health remains weak — with negative profit growth (-56% over 5 years), low sales growth (3%), and negative ROCE (-3.61%). Compared to peers like Bharti Airtel, which are profitable and stable, Vodafone Idea remains a high-risk investment with no clear visibility of turnaround, making it unsuitable for long-term investors. 

Indus Towers Ltd
Indus Towers Stock Strong Plunges 8% on Investor Fears Due to Starlink and Jio

Business and Industry Overview: 

Indus Towers Limited was formed by merging Bharti Infratel Limited and Indus Towers. This made it one of the largest telecom tower companies in the world. It builds tall towers that help mobile phones work by sending signals so people can call, text, and use the internet. Big phone companies like Airtel, Vodafone Idea, and Jio use these towers instead of making their own, which saves money and helps them reach more places. Indus Towers has over 234,643 towers and 386,819 co-locations (as of December 31, 2024) and covers all 22 telecom circles in India. It also works on 5G, which will make the internet faster. Some towers use solar power to save electricity. The company helps millions of people stay connected daily by providing affordable, high-quality, and reliable services. It is committed to putting India First and Connecting Lives Across the Nation by expanding its network in both cities and villages. 

India has the second-largest telecom market in the world. As of May 2024, the total number of telephone subscribers was 1.2 billion, and the teledensity was 85.87%. The demand for 5G smartphones is rising, making India the second-largest market for 5G devices after China. India holds 13% of the global 5G smartphone market, while China leads with 32%. The smartphone market grew by 3% in volume and 12% in value in Q3 2024. Major telecom companies in India include Jio (474.61 million users), Airtel (387.76 million users), Vodafone Idea (218.15 million users), and BSNL (86.32 million users). The number of wired broadband users stood at 41.31 million in May 2024. Wireless broadband subscriptions reached 884.01 million in FY24. India’s internet subscribers grew to 936.16 million by April- December 2024. The country also saw over 28 billion mobile app downloads in 2022, accounting for 5% of the global total. The government is investing heavily in 5G infrastructure, with plans to fiberize telecom towers and deploy 1.2 million new towers. As of now, only 36% of towers are fiberized. The telecom sector’s gross revenue stood at Rs. 2.4 lakh crore (US$ 29 billion) in FY24. The government increased Foreign Direct Investment (FDI) from 74% to 100%, attracting US$ 39.32 billion in FDI between April 2000 and March 2024. The Bharat 6G Alliance is working with European telecom companies to develop 6G technology. Investments in data centers are also growing, with Rs. 2,000 crore (US$ 242.33 million) invested in Pune in May 2023. Companies like Jio, Airtel, and Google are making big investments in India’s digital growth. The government launched a Rs. 12,195 crore (US$ 1.65 billion) Production Linked Incentive (PLI) scheme, encouraging telecom equipment manufacturing.  

Latest Stock News: 

Indus Towers’ shares dropped 8% intraday on Wednesday after Starlink, owned by Elon Musk’s SpaceX, announced its entry into India. Starlink provides internet using satellites instead of mobile towers. This can reduce the need for telecom towers, affecting companies like Indus Towers. Jio Platforms and Bharti Airtel have partnered with SpaceX to bring Starlink’s services to India. This increases competition in the telecom industry. Later, Indus Towers’ stock closed 4.89% lower at ₹324.80, bringing its market value down to ₹85,687 crore. 

Vodafone Idea’s stock also dropped 3.54% to ₹7.08 and fell 6.40% intraday to ₹6.87. Vodafone Idea is losing customers, with 1.71 million users leaving in December. The company’s market share dropped to 18.01% from 18.19%. Analysts believe Vthat odafone Idea must stop losing customers to survive. The company plans to invest heavily in improving its network, but it needs more money and government support. 

Indus Towers has over 234,643 towers and 386,819 co-locations (as of December 31, 2024). It covers all 22 telecom circles in India. Its main customers are Airtel, Vodafone Idea, and Jio, which are India’s largest telecom service providers. Indus Towers is also working on 5G expansion and using solar power to save energy. 

Despite its strong presence, Indus Towers faces risks. Satellite Internet can reduce the need for mobile towers, affecting its future growth. Investors are closely watching how Starlink, Jio, and Airtel’s partnerships impact the industry. Indus Towers plays a big role in keeping India connected, but it must adapt to new challenges in the telecom market. 

Potentials:

Indus Towers expects strong growth in FY25 as its key customers, Bharti Airtel and Vodafone Idea, expand their networks. Airtel is focusing on rural broadband expansion by adding 25,000 new sites. Vodafone Idea plans to set up over 60,000 new connections for 4G and 5G in important markets. Despite the competition, Indus Towers is in a strong position because of its large tower network across India and experience in helping Vodafone Idea with network planning. 

The company recently raised ₹23,000 crore in funding, which will help with expansion. Indus Towers’ financial strength, execution skills, and network reach give it a good chance to benefit from Vodafone Idea’s growth. Company leaders are confident that Indus Towers will secure a large share of new business, leading to higher revenues. According to CFO Vikas Poddar, the company has a solid track record and will continue to grow its business despite the competition. 

Analyst Insights: 

  • Market capitalisation: ₹ 88,609 Cr. 
  • Current Price:₹ 329 
  • 52-Week High/Low:  ₹ 461 / 227 
  • Stock P/E: 8.80 
  • Dividend Yield: 0.00 % 
  • Return on Capital Employed (ROCE): 22.1 % 
  • Return on Equity: 24.2 % 

Indus Towers is a strong company in the telecom sector. Its stock price looks cheap compared to other companies. The P/E ratio is 8.80, which is lower than that of Kore Digital (24.32) and Suyog Telematics (14.42). This means the stock may be undervalued. The company’s revenue grew 5% in the last year to ₹29,589 Cr. It has a high profit margin of 50%, which shows strong earnings. It also has a good return on equity (24.2%) and return on capital (22.1%), meaning it is using money well. 

However, there are some risks. Promoter holding dropped from 68.99% to 50%, which could be a concern. The company also has a debt of ₹21,358 Cr. Despite this, its strong financials make it a good investment. I recommend a BUY with a target price of ₹420 in the next 6 to 12 months. This gives a 27% possible profit from the current price. 

Bharti Hexacom Ltd
Bharti Hexacom Can Rally 22%- FinanceShastra Projects Strong Long-Term Growth & Initiates Buy Rating

Business and Industry Overview: 

Bharti Hexacom Ltd is a company that provides mobile and internet services. It is part of Bharti Airtel, which is a big telecom company in India. Bharti Hexacom works in Rajasthan and the Northeast. It helps people make calls, send messages, and use the internet. It gives 2G, 3 G, and 4G services. It helps Airtel grow in small towns and villages. Many people in these areas need better mobile and internet services. 

In 2024, Bharti Hexacom started selling shares to the public. This is called an IPO (Initial Public Offering). This means people can buy small parts of the company. When more people invest, the company gets money to grow. Bharti Hexacom makes good money because it uses Airtel’s strong network. Airtel is a trusted name, so many people use Bharti Hexacom’s services. 

The company wants to expand its network in the future. It wants to reach more people in more places. It also wants to bring 5G technology to its areas. Many people in Indiauseg mobile phones and the internet every day. The company wants to give them faster and better internet. It wants to improve its services so that everyone can stay connected easily. 

India has the second-largest telecom market in the world. As of May 2024, the total number of telephone subscribers was 1.2 billion, and the teledensity was 85.87%. The demand for 5G smartphones is rising, making India the second-largest market for 5G devices after China. India holds 13% of the global 5G smartphone market, while China leads with 32%. The smartphone market grew by 3% in volume and 12% in value in Q3 2024. Major telecom companies in India include Jio (474.61 million users), Airtel (387.76 million users), Vodafone Idea (218.15 million users), and BSNL (86.32 million users). The number of wired broadband users stood at 41.31 million in May 2024. Wireless broadband subscriptions reached 884.01 million in FY24. India’s internet subscribers grew to 936.16 million by April- December 2024. The country also saw over 28 billion mobile app downloads in 2022, accounting for 5% of the global total. The government is investing heavily in 5G infrastructure, with plans to fiberize telecom towers and deploy 1.2 million new towers. As of now, only 36% of towers are fiberized. The telecom sector’s gross revenue stood at Rs. 2.4 lakh crore (US$ 29 billion) in FY24. The government increased Foreign Direct Investment (FDI) from 74% to 100%, attracting US$ 39.32 billion in FDI between April 2000 and March 2024. The Bharat 6G Alliance is working with European telecom companies to develop 6G technology. Investments in data centers are also growing, with Rs. 2,000 crore (US$ 242.33 million) invested in Pune in May 2023. Companies like Jio, Airtel, and Google are making big investments in India’s digital growth. The government launched a Rs. 12,195 crore (US$ 1.65 billion) Production Linked Incentive (PLI) scheme, encouraging telecom equipment manufacturing.  

Latest Stock News: 

Bharti Hexacom is a company that provides mobile and internet services under the Airtel brand. It operates in Rajasthan and the Northeast. Experts like its shares more than those of its parent company, Bharti Airtel, because it has less risk and better growth opportunities. In these areas, fewer companies provide services, and internet use is low, so Bharti Hexacom can grow faster. Its share price started at ₹570 when it first sold shares (IPO price). It later went up to ₹1,600 but then dropped by 18%. Even after the drop, the share price is 134% higher than its starting price. Experts from Motilal Oswal believe the stock price can rise to ₹1,625, which is 22% more than now. The company makes more money per customer than many others. Its areas have less competition, which helps it earn more. Airtel’s chairman, Sunil Bharti Mittal, said Airtel might buy a company outside India, which could be risky. However, Bharti Hexacom is focused only on India, which makes it safer. The company is expected to grow fast in the next few years. 9 out of 12 experts say it is good to buy, 2 say hold, and 1 says sell. Bharti Hexacom is also expected to make 23% more profit every year from 2024 to 2027. Even though its stock dropped 0.7% today, experts still believe it will keep growing in the future. 

Potentials: 

Bharti Hexacom wants to grow bigger in the future. It will increase mobile and internet services in Rajasthan and the Northeast. These places have fewer internet users, so more people will start using data and broadband. This will help the company earn more money. It will also make its network better and increase internet speed. Experts believe the company will grow by 23% every year from 2024 to 2027. 

Bharti Hexacom wants more people to use its services. It will change non-internet users into internet users. It will also move prepaid customers to postpaid plans. The company will improve broadband services and offer better plans. This will help it make more money. 

Its parent company, Bharti Airtel, may buy a company outside India. However, Bharti Hexacom will only work in India. This makes it less risky and more stable. The company will face less competition because it is working in less crowded areas. Experts say that by the end of 2025, Bharti Hexacom will become the top company in Rajasthan and the Northeast. 

If mobile and broadband prices go up in the future, Bharti Hexacom will earn even more money. Experts think its share price will increase to ₹1,625, which is 22% more than now. Even though its share price dropped a little today, experts believe the company will keep growing. 

Analyst Insights: 

  • Market capitalisation: ₹ 68,500 Cr. 
  • Current Price:₹ 1,370 
  • 52-Week High/Low: ₹ 1,609 / 755 
  • Stock P/E: 65.2 
  • Dividend Yield: 0.29 % 
  • Return on Capital Employed (ROCE): 14.0 % 
  • Return on Equity: 14.0 % 

Bharti Hexacom is growing well. Its sales have increased by 14% every year in the last five years. The company’s profit has grown by 22% per year. It is making more money than before. Its profit margin improved from -2 % in 2019 to 47% in 2024. This means the company is earning more after paying costs. It also collects money from customers faster now. Earlier, it took 57.6 days, but now it takes only 22.9 days. 

However, the stock is very expensive. Its P/E ratio is 65.2, which is much higher than that of other companies. It is trading at 13.1 times its book value, which means investors are paying more for each share than its actual worth. The ROE is 14%, which is not very high. The company also has a high debt of ₹8,105 crore. It does not pay much dividend, as the yield is only 0.29%. 

Because of this, long-term investors can hold the stock as the company grows. But new investors should wait because the stock is costly now.